Nov 24, 2015 11:21 AM IST | Source: Reuters

Gold, silver at multi-year lows on robust dollar, Fed view

Spot gold was little changed at USD 1,069.67 an ounce by 0042 GMT, after losing 0.8 percent in the previous session. The metal had fallen to USD 1,064.95 last week, its lowest since February 2010.

Gold, silver at multi-year lows on robust dollar, Fed view

Gold languished near its lowest level in nearly six years on Tuesday, while silver and platinum also held near multi-year lows on a strong dollar and increasing expectations that the Federal Reserve would increase US interest rates next month.

FUNDAMENTALS

* Spot gold was little changed at USD 1,069.67 an ounce by 0042 GMT, after losing 0.8 percent in the previous session. The metal had fallen to USD 1,064.95 last week, its lowest since February 2010.

* US gold GCcv1 was also near a six-year low of USD 1,062 reached last week.

* Silver steadied after slumping to USD 13.86 on Monday, the lowest since August 2009. Platinum was close to USD 839.50 reached in the previous session, its lowest since December 2008.

* The precious metals have been hit by strength in the dollar and expectations that the Fed would hike rates in December for the first time in nearly a decade.

* Demand for bullion and the other metals that do not pay any interest could be hurt by higher rates.

* San Francisco Fed President John Williams on Saturday cited a "strong case" for raising rates when Fed policymakers meet next month, as long as US economic data does not disappoint, echoing other officials. Nonfarm payrolls data earlier this month also supported views of a strong economy.

* The dollar rose to an eight-month high on Monday on hopes of a hike next month. A strong greenback makes dollar-denominated gold and other metals more expensive for holders of other currencies.

* Investors have been pulling out of precious metals funds at a rapid pace, further hurting sentiment.

* Assets in SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell 0.77 percent to 655.69 tonnes on Monday, the lowest since September 2008.

* Holdings of platinum ETFs are at a two-year low, while assets in palladium funds are close to their lowest since April 2014.

MARKET NEWS

* World equity markets slipped on Monday, with US stocks ending slightly lower in quiet trading after strong gains last week.

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